PRINTER'S NO. 1164
No. 1050 Session of 1981
INTRODUCED BY RITTER, MILLER, CALTAGIRONE, HALUSKA, BLAUM,
PISTELLA, SNYDER, COWELL, DAWIDA, MRKONIC, MORRIS, JOHNSON
AND PRATT, MARCH 30, 1981
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 30, 1981
AN ACT
1 Amending the act of August 26, 1971 (P.L.351, No.91), entitled
2 "An act providing for a State Lottery and administration
3 thereof; authorizing the creation of a State Lottery
4 Commission; prescribing its powers and duties; disposition of
5 funds; violations and penalties therefor; exemption of prizes
6 from State and local taxation and making an appropriation,"
7 eliminating the commission, making certain permissive actions
8 mandatory and further providing for certain stockholder
9 interests and rules, regulations and orders.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. The title and sections 3, 4, 5, clause (8) of
13 subsection (a) of section 6, section 7 and subsection (a) of
14 section 9, act of August 26, 1971 (P.L.351, No.91), known as the
15 "State Lottery Law," are amended to read:
16 AN ACT
17 Providing for a State Lottery and administration thereof;
18 authorizing the [creation of a State Lottery Commission;
19 prescribing its powers and duties;] disposition of funds;
20 violations and penalties therefor; exemption of prizes from
21 State and local taxation and making an appropriation.
1 Section 3. Definitions.--As used in this act:
2 [(1) "Commission" shall mean the State Lottery Commission
3 established by this act.]
4 (2) "Division" shall mean the Division of the State Lottery
5 created by this act.
6 (3) "Lottery" or "State lottery" shall mean the lottery
7 established and operated pursuant to this act.
8 (4) "Director" shall mean the Director of the Division of
9 the State Lottery.
10 (5) "Secretary" shall mean the Secretary of Revenue.
11 Section 4. State Lottery [Commission; Chairman] Division.--
12 There is hereby created within the Department of Revenue a
13 Division of the State Lottery. [which shall include a State
14 Lottery Commission.
15 The commission shall consist of a chairman and four members,
16 all of whom shall be citizens and residents of the State. No
17 more than three of the five members shall belong to the same
18 political party. The chairman shall be appointed by the
19 Governor, by and with the advice and consent of two-thirds of
20 all the members of the Senate, and shall hold office at the
21 pleasure of the Governor. The members of the commission shall be
22 appointed by the Governor, by and with the advice and consent of
23 two-thirds of all the members of the Senate. The members of the
24 commission shall hold office for four years. No member, upon the
25 expiration of his term, shall continue to hold office until his
26 successor is appointed and qualified. Of the members first
27 taking office, two shall be appointed for a term of one year and
28 two for a term of two years. The members of the commission shall
29 receive actual and necessary expenses incurred by them in the
30 performance of their duties, together with a per diem allowance
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1 to be paid by the Governor's Office for each day spent in the
2 performance of their duties. Vacancies in the commission
3 occurring otherwise than by expiration of term shall be filled
4 for the unexpired term in the same manner as original
5 appointments. Any member of the commission, other than the
6 chairman, may, after notice and opportunity to be heard, be
7 removed by the Governor for neglect of duty, misfeasance,
8 malfeasance or nonfeasance in office.
9 Three of the members of the commission shall constitute a
10 quorum to do business.
11 The director shall act as secretary and executive officer of
12 the commission.]
13 [Section 5. Powers and Duties of Commission.--The commission
14 shall advise and make recommendations to the Secretary of
15 Revenue regarding the functions and operations of the State
16 lottery.]
17 Section 6. Powers and Duties of the Secretary of Revenue.--
18 (a) In addition to the powers and duties provided by law and
19 "The Administrative Code of 1929," the Secretary of Revenue
20 shall have the power and it shall be his duty to operate and
21 administer the lottery, and to promulgate rules and regulations
22 governing the establishment and operation thereof, including but
23 not limited to:
24 * * *
25 (8) The method to be used in selling tickets or shares
26 except that no transaction involving tickets or shares shall be
27 conducted via a telephone and no transaction involving tickets
28 or shares shall be conducted unless the agent receives payment
29 in cash from the purchaser at the time of the transaction.
30 * * *
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1 Section 7. Lottery Sales Agents; Qualifications;
2 Prohibitions.--(a) No license as an agent to sell lottery
3 tickets or shares shall be issued to any person to engage in
4 business exclusively as a lottery sales agent. Before issuing
5 such license the secretary shall consider such factors as:
6 (1) The financial responsibility and security of the person
7 and his business or activity;
8 (2) The accessibility of his place of business or activity
9 to the public;
10 (3) The sufficiency of existing licenses to serve the public
11 convenience; and
12 (4) The volume of expected sales.
13 For the purposes of this section, the term "person" shall be
14 construed to mean and include an individual, association,
15 corporation, club, trust, estate, society, company, joint-stock
16 company, receiver, trustee, assignee, referee, or any other
17 person acting in a fiduciary or representative capacity, whether
18 appointed by a court or otherwise, and any combination of
19 individuals. "Person" shall also be construed to mean and
20 include all departments, commissions, agencies and
21 instrumentalities of the State, including counties and
22 municipalities and agencies and instrumentalities thereof.
23 (b) If the secretary shall find that the experience,
24 character and general fitness of the applicant are such that the
25 participation of such person as a lottery sales agent will be
26 consistent with the public interest, convenience and necessity,
27 it may thereupon grant a license.
28 Without limiting the generality of the foregoing, the
29 secretary [may] shall refuse to issue a license pursuant to this
30 section, [or may] and shall suspend or revoke a license so
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1 issued if it shall find that the applicant or licensee:
2 (1) Has been convicted of a crime involving moral turpitude.
3 (2) Has engaged in bookmaking or other form of illegal
4 gambling.
5 (3) Has been found guilty of any fraud or misrepresentation
6 in any connection.
7 (4) Has violated any published rule, regulation or written
8 order of the secretary.
9 (c) The secretary [may] shall refuse to grant a license [or
10 may] and shall suspend or revoke a license issued pursuant to
11 this section to a corporation, if it shall determine that:
12 (1) Any officer, director, member or stockholder of such
13 corporation applying for a license or of any corporation which
14 owns stock in or shares in the profits, or participates in the
15 management of the affairs of such applicant: (i) has been
16 convicted of a crime involving moral turpitude, (ii) has engaged
17 in bookmaking or other forms of illegal gambling, (iii) has been
18 found guilty of any fraud or misrepresentation in any
19 connection, or (iv) has violated any published rule, regulation
20 or written order of the secretary.
21 (2) The experience, character, or general fitness of any
22 officer, director, or stockholder of any of the aforesaid
23 corporations is such that the participation of such person as a
24 lottery sales agent would be inconsistent with the public
25 interest, convenience or necessity, but if the secretary
26 determines that the interest of any stockholder referred to in
27 this clause or in clause (1) of this subsection is [sufficient]
28 insufficient, in the opinion of the secretary, to affect
29 adversely the conduct of a lottery sales agency by such
30 corporation in accordance with the provisions of this act, the
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1 secretary may disregard such interest in determining whether or
2 not to grant a license to such corporation.
3 (3) The applicant is not the owner or the lessee of the
4 business at which it will conduct a lottery sales agency
5 pursuant to the license applied for, or that any person, firm,
6 association, or corporation other than the applicant shares, or
7 will share, in the profits of the applicant, other than by
8 dividends as a stockholder, or participates, or will
9 participate, in the management of the affairs of the applicant.
10 (d) Pending final determination of any question under this
11 section, the secretary may issue a temporary license upon such
12 terms and conditions as it may deem necessary, desirable or
13 proper to effectuate the provisions of this act.
14 Section 9. Sales of Tickets in Excess of Regulated Price;
15 Sales by Non-licensed Persons; Penalties.--(a) No person shall
16 sell a ticket or share at a price greater than that fixed by
17 rule or regulation of the [commission] secretary.
18 * * *
19 Section 2. Section 10 of the act, amended March 1, 1974
20 (P.L.86, No.21), is amended to read:
21 Section 10. Sales to Certain Persons Prohibited; Penalty.--
22 No ticket or share shall be sold to any person under the age of
23 eighteen years. For the purpose of making a gift, a person
24 eighteen years of age or older may purchase a ticket or share
25 for the benefit of a person less than that age.
26 Any agent or employe of any agent who knowingly sells a
27 lottery ticket or share to any person under the age of eighteen
28 years shall be guilty of a misdemeanor, and upon conviction
29 thereof, shall be sentenced to pay a fine not exceeding five
30 hundred dollars ($500).
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1 No ticket or share shall be sold to and no prize shall be
2 awarded to any officer or employe of the [State Lottery
3 Commission or the] Division of the State Lottery in the
4 Department of Revenue or any spouse, child, brother, sister or
5 parent residing as a member of the same household in the
6 principal place of abode of any of the foregoing persons.
7 Section 3. This act shall take effect immediately.
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